Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Manchester Evening News
Manchester Evening News
National
Joseph Timan

Council tax set to rise by nearly 4 pc in Salford to balance budget

Council tax is expected to rise by nearly 4 pc in Salford to balance the budget.

A 3.99 pc tax hike has been proposed, costing Band A households an extra £60.05 a year with Band D properties facing an annual increase of £90.05.

It comes after two council tax hikes were approved by Greater Manchester's leaders in the last couple of weeks, costing Band D homes a further £22 a year.

READ MORE: Council tax to rise in every borough of Greater Manchester from April 1

Salford councillors will have their say and vote on the local council tax proposals when they approve the annual budget at a meeting next week.

The budget factors in promised investment in a large-scale skills and work programmes rising to £1.5m a year by 2024 as well as a guarantee that all care workers in the city will be paid the Real Living Wage starting from April 1.

New social housing is set to be built with more homes at 'truly affordable rents' as part of the council's capital programme for the next financial year.

And plans are in place to bring the historic Buile Hill Mansion back into use as a community and wedding venue, with further refurbishment expected soon.

But balancing the budget for the next financial year will require savings of £7.8m, most of which will be achieved by pooling resources with the NHS.

Salford council is expecting to spend £206m next year, according to a report.

The local authority is estimating that there will be budget gaps of more than £11m in each of the financial years which follow the one starting this April.

The 3.99 pc council tax increase is expected to generate £4.9m next year.

It is made up of a 1.99 pc general levy increase – the maximum local authorities in England are allowed to raise it by without a referendum.

The rest of the increase comes from the adult social care precept which is ringfenced for certain services and can rise by 2 pc in Salford next year.

Nearly £2m of the fund gap will be plugged by using the Local Tax Income Guarantee – a government grant created to address the impact of Covid.

Savings of nearly £1m have also been identified within the place directorate.

Salford mayor Paul Dennett has written to the government outlining its 'failure' to deal with financial pressures facing local authorities this year.

He said: "The government’s financial settlement given this year to Salford has provided little comfort as it doesn’t give us the opportunity to plan ahead nor adequately address the budget pressures we face - the rising costs of goods and services, the increasing demand on services - nor does it address the budget cuts over the life of austerity since 2010 that has taken an incomprehensible £232m from our budget."

The national insurance increase will cost Salford council an extra £1.1m for its own staff and is also likely to affect the cost of contracts for outsourced staff.

In addition to this, changes to the national minimum wage will cost an extra £1.4m to integrated health and care fund for the city in the next financial year.

Further financial pressures include an additional £0.4m in employer pension contributions, £1.3m in price inflation and £3.4m to meet pay inflation.

Labour councillor Bill Hinds, who is the lead member for finance and support said Salford council recognises the challenges faced by everyone in the city.

He said: "In taking decisions about the budget we recognise the impact on the lowest paid and using everything we have available to us to direct support to tackle poverty."

The budget - including any tax increases - will be discussed at a full council meeting on Wednesday (February 23) and the decision will be put to a vote.

To get the latest email updates from the Manchester Evening News, click here.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.